2007 (8) TMI 592

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....ted the factory of the appellants. After physical verification of the stock of the finished goods, no discrepancy was found. The officers recovered one rough Note Book. They recorded the statement of Shri Ranbir Sharma, Partner of the appellant-company, who stated that they cleared the goods without payment of duty as indicated in the note book. They have also deposited Rs. 2,03,265/- , Rs. 9,106/- and Rs. 11,061/-. The adjudicating authority confirmed the demand of duty of Rs. 4,03,265/- and imposed penalty of equal amount under Rule 173Q(1) of the erstwhile Central Excise Rules, 1944 read with Section 11AC of the Central Excise Act, 1944 along with interest. He also imposed redemption fine of Rs. 80,000/- in connection with confiscation o....

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....er. He submits that in this case, the partner of the appellant-company admitted the clandestine removal in his statement before the Excise officers. He submits that the statement was retracted after five years in reply to the show cause notice. Therefore, the adjudicating authority rightly confirmed the demand of duty on the basis of the note book. He relied upon the decision of the Tribunal in the case of Shalu Dyeing & Printing Mills v. Commissioner of Customs and Central Excise, Surat - 2003 (152) E.L.T. 352 (Tribunal - Mumbai). 4. After hearing both the sides and on perusal of the records, it is seen that the demand of duty is based on one Note Book recovered from the factory office of the appellant company. The Central Excise o....

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....lanation was offered by the appellants, at any point of time. It is seen that the partner of the appellant-firm accepted the note book and had given a detailed statement in respect of procurement of the raw materials. So, no further investigation is required in this matter. The case laws cited by the ld. Advocate are not applicable herein. 5. On perusal of the said note book, it is seen that the most of the pages have been showing the quantity of the goods sold and the rate as well as the total amount. Thus, it is evident that the appellants sold the materials as indicated in the note book without payment of duty. This is an admitted fact that the note book was recovered from the factory of the appellants and the appellants failed t....